California tax on transiting boat

[Richard5]

By my experience, Snorry is exactly correct. I did the same as he suggests and it worked.

As aggressive as SD County may be you can count your lucky stars it wasn't LA County.

In one case it took three years although that was for a dollar amount about ten times the amount. Another took almost one year.

Document everything. He with the longest paper trail wins. Your receipts will win the day.

Patience and persistence and Snorry's advice is how you do it.

[svlamorocha]

Originally Posted by Duckwheat

The bill is for July 1, 2018 to June 30, 2019. I left January 26, 2018.

How much do you think they reduce it? Will they bill me going forward?

There is no proration. You pay 100% if the situs, as determined on 1/1, is in state/county.
Chapter 5 of the booklet will tell you how to determine situs as of 1/1 based on facts at that time. All the precedents are there! Also don't forget that Section 1141 of the Revenue and Taxation says "boats shall be assessed where they are habitually moored when not in use" or at least it said that when it mattered to me. If your appeal is well founded accordong to chapter 5 you will win it. Disregard the advice from those who did not read chapter 5.

[valhalla360]

Originally Posted by roverhi

Wrote them a letter with proof that I was as no longer in Alameda and wasn’t for the tax period and never heard more from them again.
.

If you never plan to return to CA, that's a viable option...but nothing to say, the system won't spit out a bill in 5yrs that is tripled due to late fees.

[SV THIRD DAY]

Originally Posted by valhalla360

If you never plan to return to CA, that's a viable option...but nothing to say, the system won't spit out a bill in 5yrs that is tripled due to late fees.

They just put a Tax Lein on your boat that you find out about when you attempt to sell. Not hearing from the Tax man again doest mean your problem is solved. You need something in writing!!!

[Larry Florida]

Originally Posted by JPA Cate

If a visitor unknowingly winds up on the list, documenting that they were only in Calif for a period of less than 3 months, plus being registered elsewhere should get the tax office off their backs.

Ann

plus being registered elsewhere ....

Any thoughts on USCG documented in another state meeting the registered elsewhere requirement.

Also CA will take the money straight out of your bank account. Happened to a neighbor in New Jersey. He had not lived in CA for 15 years. Eventually he got the money back by finding a 15 year old tax return. The error was all CA but he had to find the old papers. Guilty until proven innocent I'm afraid.

[CaptTom]

Originally Posted by Larry Florida

Any thoughts on USCG documented in another state meeting the registered elsewhere requirement.

A US Documented vessel is not documented "in" any state.

You do have to pick a "hailing port." Actually, it can be any valid place name. It doesn't have to be a city with a harbor, or even anywhere near the water. It doesn't have to be where you keep the boat, or your home town.

The problem is, whatever state your chosen hailing port is in, will assume that's where the boat is, and send you a tax bill. Proof that the boat isn't in that state, or in my case, proof that you've already paid the tax at the town hall, should get them off your back.

Not sure why you're "guilty until proven innocent" in this case, but that's the way the system works.

[CarinaPDX]

I am very sympathetic with the OP's plight, and trust he will be able to avoid the tax with modest effort. He should know, however, that his own state is one of the worst for visiting yachts, and has been for many decades. As a resident of Oregon since 1974 I never paid any sales tax on my boat (the same for Alaskan residents), but I did pay more in income and property taxes than I would have in taxes in Washington. If I stay more than 180 days in Washington I must pay the 8-8.9% tax on my boat all these years later. It is a bit like asking someone from Washington to pay Oregon for the income taxes they never paid...

Actually, it is worse than first glance. When arriving in Washington a visiting vessel has 60 days free to cruise; before that time is up if he wishes to stay longer he must 1) buy a 60 day cruising permit (renewable once) and 2) must apply for a temporary Washington State Vessel ID document, good for the balance of the 180 days. Both documents require reporting the date of first arrival in Washington. Failure to get the temporary ID in time means that the use tax is owed at the end of the first 60 days, not 180 days. And of course once registered the 0.5% excise tax is owed every year.

Needless to say, B.C. looks a lot more inviting.

Greg

[TrentePieds]

Oh dear, Stu !

That is five and twenty years ago. Only us old fogies are gonna get that one :-)!

TP

[Larry Florida]

Originally Posted by CaptTom

A US Documented vessel is not documented "in" any state.

You do have to pick a "hailing port." Actually, it can be any valid place name. It doesn't have to be a city with a harbor, or even anywhere near the water. It doesn't have to be where you keep the boat, or your home town.

The problem is, whatever state your chosen hailing port is in, will assume that's where the boat is, and send you a tax bill. Proof that the boat isn't in that state, or in my case, proof that you've already paid the tax at the town hall, should get them off your back.

Not sure why you're "guilty until proven innocent" in this case, but that's the way the system works.

My boat is documented. Mailing address in New Jersey, hailing port in N.Y.. Never got a bill, never did a state registration. Their system is not "perfect" like CA.

[Jason Flare]

Originally Posted by TrentePieds

Oh dear, Stu !

That is five and twenty years ago. Only us old fogies are gonna get that one :-)!

TP

Spelling.

I guess I’m a fogie.

[valhalla360]

Originally Posted by SV THIRD DAY

They just put a Tax Lein on your boat that you find out about when you attempt to sell. Not hearing from the Tax man again doest mean your problem is solved. You need something in writing!!!

My point wasn't really that it's a good option...planing to never return. Realistically, most people won't be able to state that with any degree of certainty.

But even then, the tax lein could probably be fought easier than the tax bill. The CG is probably more reasonable and if you prove to them, that you weren't a resident and the boat was outside the state for most of the year...

...but still a big hassle and I would want it in writing from the state now that they have canceled the bill.

[Duckwheat]

I sent San Diego County a copy of my TIP into Mexico and a letter from Chula Vista Marina. They are cancelling the tax bill.

A pleasant surprise.

DW

[JPA Cate]

Hey, good on ya, mate. Glad you got it solved.

Ann

[Capt Phil]

My heart goes out to you, Duckwheat! Personally, I had the poor judgement to have sold my boat in CA one fall but intended to buy another within 6 months so kept my slip in San Diego, Harbour Island marina.
I purchased my next boat in Washington State in November and embarked on a passage up the inside passage of British Columbia around January 1 the following year having purchased fuel at the Chevron dock in Vancouver, BC harbor on January 1 that year.
I did not keep receipts from all the places we stopped at up and down the BC coast but after 6 months of cruising the PNW, we arrived back in Southern Ca to find a tax bill awaiting us.
I explained my travel circumstances in writing and by phone to the taxing authority in SD and Sacramento to no avail. They both demanded to see receipts of my travels. This required a driving trip back to Wasington state and up and down the BC coast to the marinas we visited that were accessible by car both on the mainland and Vancouver Island. Many were only accessable by boat so it was a rather incomplete yet arduous trip.
I copied all the receipts I could and forwarded them to Sac, CA, walked them to the San Diego Property Tax Office and finally got relief from the over $10 grand tax bill.
After this lengthy and demanding experience, it poisoned me from every living in or visiting CA. I sold my boat/home as we were living aboard in San Diego, I closed down my delivery business and moved to Nevada. I will not even purchase gas in CA, let alone shop there.
Having been in the business of delivering boats out of State, purchased in CA, usually to Ensenada from Southern CA, I was acutely aware of the law so no excuses on my part. I sincerely hope you avoid any blow back from either the state or county but can assure you that you are not alone in being screwed over by state and county taxing authorities!
This was several years ago but it still stings to recall the events.
Phil

[LRicochet]

Not unusual. Washington State is even worse. We were charged more than $100k for keeping our boat there for a few months without an application for temporary Moorage, which we didn’t know about. Now we check rules for every state before entering waters.